Mas Financial Services Ltd. · NSE:MASFIN
Mas Financial Services — Q4 FY24 Earnings Presentation
56 slides from Mas Financial Services's earnings presentation, Apr 24, 2024
Slide 1: Stock exchange cover letter for investor presentation
MFSL/SEC/EQ/2024/46 April 24, 2024 To, To, The Manager, General Manager BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Mumbai – 400001 Bandra-Kurla Complex Bandra (East) Mumbai – 400051 Scrip Code: 540749, 947381 Tradi
Slide 2: Investor Presentation – Q4FY24
INVESTOR PRESENTATION – Q4FY24 2023-24 1995-96
Slide 3: Rating upgraded to CARE AA- (Stable)
RATING UPGRADED *“”””""" to CARE AA- (STABLE) from CARE A+ (Positive) Reflection of Strong Fundamentals & Robust Financial Performance
Slide 4: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of MAS Financial Services Limited (together with its subsidiary MAS Rural Housing & Mortgage Finance Limited). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation
Slide 5: Table of Contents
Table of Contents 1 MAS AT A GLANCE 05 2 GROWTH STORY 07 3 STRONG FUNDAMENTALS 11 4 STANDALONE FINANCIAL REVIEW 18 5 MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED - SUBSIDIARY 28 6 FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG) 34 MAS Financial Services Limited 7 UNDERSTANDING MAS 40 8 WAY FORWARD
Slide 6: MAS at a Glance (Standalone)
MAS at a Glance (Standalone) MAS Financial Services was established in 1995 with an objective: “To address the financial needs of the underserved segments of the country” 25+ Diversified Product Portfolio Years of Endeavours Micro Enterprise Loans SME Loans 1,01,256 Mn ₹ 12 189 Standalone AUM States
Slide 7: Strong Distribution Network
Strong Distribution Network MAS has steadily entered adjacent geographies 1 Punjab 1 Uttarakhand 189 1 Haryana 1 Delhi 40 Branches Rajasthan 62 40 Gujarat Madhya Pradesh 1 Chhattisgarh Pan India Network presence Maharashtra through 29 MAS Financial Services Limited 1 182 7 Telangana NBFC Partners Ka
Slide 8: Growth
GROWTH Belief & Philosophy CONSISTENTLY AND STEADILY IS THE FASTEST WAY TO REACH WHERE YOU WANT TO
Slide 9: Journey of Quarters
Journey of 116 Quarters Asset Under Management (AUM) 1,01,256 (In ₹ Mn) 80,926 62,468 53,384 59,663 53,724 41,570 31,561 25,650 20,052 10,123 13,910 2,312 2,597 2,682 3,884 5,118 6,909 20 1,510 4Q 44Q 48Q 52Q 56Q 60Q 64Q 68Q 72Q 76Q 80Q 84Q 88Q 92Q 96Q 100Q 104Q 108Q 112Q 116Q Profit After Tax (PAT)
Slide 10: Growing Consistently and Steadily
Growing Consistently and Steadily - Our Growth Journey of Last 17 Years Since Our First Capital Raise… Despite various micro and macro headwinds Track record of high-quality portfolio with Net Maintained healthy return on assets including demonetisation, GST, NBFC Stage 3 Assets below 2% over the pe
Slide 11: Best-in-Class Asset Quality Across Cycles
Best-in-Class Asset Quality Across Cycles and Resilience Through Systematic Shocks Catalyst in growth of entrepreneurs, not creating just borrowers GROSS STAGE 3 ASSETS NET STAGE 3 ASSETS 7.2% 2nd Wave 6.4% 1st Wave 2.30% 2.35% 2.28% 2.27% 2.26% 2.21% 2.23% 2.17% 2.23% 2.25% 2.15% 2.13% 1.94% 1.70%
Slide 12: Strong Fundamentals
Strong Fundamentals
Slide 13: Diversified Product Offerings Presenting Significant Growth Opportunities
Diversified Product Offerings Presenting Significant Growth Opportunities MAS focuses on serving the underserved credit needs of mid and low-income group segments Micro-Enterprise Loans SME Loans Two-Wheeler Loans Commercial Salaried Vehicle Loans Personal Loans 43,851 Mn 37,339 Mn 6,701 Mn 7,477 Mn
Slide 14: AUM by Product Category
Asset Under Management – by Product Category (In ₹ Mn.) Micro-Enterprise loans(MEL) SME loans 2-Wheeler loans Commercial Vehicle loans Salaried Personal Loans 1,01,256 5,889 7,477 80,926 6,701 3,049 3,725 5,544 62,468 3,452 37,339 3,774 29,867 22,748 MAS Financial Services Limited 43,851 38,742 32,4
Slide 15: AUM by Product Category: Mar 24 vs Mar 23
Asset Under Management – by Product Category (In ₹ Mn.) Mar 24 vs. Mar 23 Micro Enterprise Loans SME Loans Two Wheeler Loans Commercial Vehicle Loans Salaried Personal Loans* 13.19% YoY 25.02% YoY 20.88% YoY 100.72% YoY 93.13% YoY 43,851 38,742 37,339 7,477 MAS Financial Services Limited 6,701 29,86
Slide 16: AUM – Distribution Channel Wise
Asset Under Management – Distribution Channel Wise Increasing share of Direct Retail Distribution (%) 38 33 48 62 67 52 MAS Financial Services Limited Mar-22 Mar-23 Mar-24 (₹ Mn) AUM 62,468 80,926 1,01,256 Retail Asset Channel Direct Retail Distribution 15
Slide 17: Leveraging Technology
Leveraging Technology MAS is integrating technology across all verticals of its operations Collaboration with 45+ APIs, enabling authentic data sourcing Origination Decisioning Operations Disbursement & Collection • Centralised onboarding and OTP • Pre-set rule engines to determine credit • Remote a
Slide 18: Strong Liability Management
Strong Liability Management The composition of our The Company continues to Sources of fund as on March 31, 2024 (%) liability mix ensures healthy demonstrate its capability of ALM and well diversified efficient liability management resource mix. The cashflow in all the cumulative buckets Around 85%
Slide 19: Standalone Financial Review (Q4FY24)
Standalone Financial Review (Q4FY24)
Slide 20: Key Highlights – FY 2023-24
Key Highlights – FY 2023-24 Asset Under Management (AUM) Profit After Tax (PAT) Return on Avg. Net Worth 1,01,256 Mn 25.12 ₹ % (FY23: ₹80,926 Mn) ₹2,478 Mn 23.28% (FY23: ₹2,010 Mn) 16.31% Return on Avg. Balance Sheet Assets Net Interest Income (NII) Cost of Borrowing (COB) 2.95% 6,104 Mn 31.26% 65bp
Slide 21: Key Highlights – Q4 FY24
Key Highlights – Q4 FY24 Asset Under Management (AUM) Profit After Tax (PAT) Return on Avg. Net Worth* ₹1,01,256 Mn 25.12 % (Q4 FY23: ₹80,926 Mn) ₹680 Mn 22.50% (Q4 FY23: ₹556 Mn) 16.98% Return on Avg. Balance Sheet Assets* Net Interest Income (NII) Cost of Borrowing* (COB) 3.05% 1,680 Mn 35.14% 48b
Slide 22: Financial Performance – Q4 FY24
Financial Performance – Q4 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) On & Off Book AUM (%) 17.48% 25.12% 17,690 1,01,256 15,057 19 19 22 80,926 13,406 62,468 81 81 78 Mar-22 Mar-23 Mar-24 Mar-22 Mar-23 Mar-24 Mar-22 Mar-23 Mar-24 Off Book On Book Return on Avg. Aum (RoAUM)* Re
Slide 23: Financial Performance – Q4 FY24
Financial Performance – Q4 FY24 Revenue (In ₹ Mn) Net Interest Income (NII) (In ₹ Mn) 12,246 6,104 9,399 4,650 23.04% 35.14% 6,571 3,375 2,678 3,295 1,680 1,243 FY22 FY23 FY24 Q4FY23 Q4FY24 FY22 FY23 FY24 Q4FY23 Q4FY24 Operating Expense (In ₹ Mn) Profit After Tax (PAT) (In ₹ Mn) 1,894 2,478 MAS Fina
Slide 24: Financial Performance – Q4 FY24
Financial Performance – Q4 FY24 Optimized cost structure Operating Expense Ratio* Operating Expense as % of NII Operating Expense as % of Gross Income 31.68% 33.03% 2.24% 31.03% 2.05% 2.08% 27.30% 28.69% 16.84% 15.68% 15.47% 1.82% 14.02% 1.59% 13.32% FY22 FY23 FY24 Q4FY23 Q4FY24 FY22 FY23 FY24 Q4FY2
Slide 25: Financial Performance – Q4 FY24
Financial Performance – Q4 FY24 Strongly Capitalized Debt Equity Ratio Capital Adequacy Ratio 26.35% 25.25% 3.92 4.00 24.05% 3.39 Mar-22 Mar-23 Mar-24 Mar-22 Mar-23 Mar-24 Healthy Coverage Interest Coverage Ratio MAS Financial Services Limited 1.66 1.56 1.54 1.49 1.56 FY22 FY23 FY24 Q4FY23 Q4FY24 24
Slide 26: Asset Under Management – Credit Quality – DPD
Asset Under Management – Credit Quality 1 – 30 DPD 31 – 60 DPD 61 – 90 DPD 91 –120 DPD > 120 DPD 1.53% 1.43% 1.67% 1.59% 1.65% 1.69% 0.70% 0.81% 0.48% 0.54% 0.52% 0.58% 0.49% 0.57% 0.75% 0.79% 0.51% 0.82% MAS Financial Services Limited 1.13% 0.86% 0.86% 1.01% 0.88% 0.87% 1.81% 1.91% 1.94% 1.78% 1.82
Slide 27: Credit Quality
Credit Quality (In ₹ Mn.) Mar-24 Mar-23 Particulars Mar-24 Mar-23 Particulars AUM Provision AUM Provision Gross Stage 1 And Stage 2 Assets As % Of On Book Assets 97.58% 97.98% Stage 1 75,741.65 197.51 63,108.92 173.85 Stage 1 & Stage 2 Assets (Standard Assets) Provisioning 0.48% 0.50% Stage 2 1,146.
Slide 28: Financial Statement: FY22 to FY24
Financial Statement: FY22 to FY24 (In ₹ Mn.) PROFIT & LOSS STATEMENT BALANCESHEET STATEMENT Particulars FY 2022 FY2023 FY2024 Particulars Mar-22 Mar-23 Mar-24 ASSETS Total Revenue 6,571 9,399 12,246 Financial assets 59,763 75,724 89,772 Loans 45,538 59,102 72,648 Other financial assets 14,225 16,623
Slide 29: MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
MAS Rural Housing & Mortgage Finance Limited (MRHMFL) Subsidiary
Slide 30: About MRHMFL
About MRHMFL MAS is targeting affordable housing finance segment through its subsidiary MAS Rural Housing & Mortgage MRHMFL provides loans for MRHMFL provides housing loans in With its continued focus on the rural Finance Limited (“MAS Housing” or purchase of new and old houses, rural and semi-urban
Slide 31: Financial Performance – Q4 FY24 (MRHMFL)
Financial Performance – Q4 FY24 Assets Under Management (AUM) (In ₹ Mn) Net Worth (In ₹ Mn) 30.20% 44.26% 1108 5,963 851 4,133 619 3,141 Mar-22 Mar-23 Mar-24 Mar-22 Mar-23 Mar-24 Borrowing (In ₹ Mn) Revenue (In ₹ Mn) 3,796 625 MAS Financial Services Limited 2,916 438 2,220 363 42.58% 177 124 Mar-22
Slide 32: Financial Performance – Q4 FY24 (MRHMFL)
Financial Performance – Q4 FY24 Profit After Tax (PAT) (In ₹ Mn) Net Interest Income (NII) (In ₹ Mn) 76 299 63 49 212 51.55% 160 39.91% 21 83 14 59 FY22 FY23 FY24 Q4 FY23 Q4 FY24 FY22 FY23 FY24 Q4 FY23 Q4 FY24 Gross Stage 3 Assets Net Stage 3 Assets MAS Financial Services Limited 0.90% 0.66% 0.70% 0
Slide 33: Liability Management
Liability Management Sources of Fund as on 31st March 2024 The composition of our liability mix The Company continues to demonstrate (%) ensures healthy ALM and well diverse its capability of efficient liability resource mix. The cashflow in all the management. cumulative buckets is positive. NHB Re
Slide 34: Credit Quality
Credit Quality (In ₹ Mn.) Mar-24 Mar-23 Particulars Mar-24 Mar-23 Particulars AUM Provision AUM Provision Stage 1 And Stage 2 Assets As % Of On Book Assets 98.96% 99.26% Stage 1 4,302.87 3.19 3,202.04 2.84 Stage 1 And Stage 2 Assets ( Standard Assets) 0.31% 0.32% Provisioning Stage 2 246.67 10.89 17
Slide 35: Focus on Environment, Social & Governance (ESG)
E S G Environment Social Governance FOCUS ON ENVIRONMENT, SOCIAL, & GOVERNANCE (ESG)
Slide 36: Environmental Stewardship
Environmental Stewardship MAS endeavours to create awareness The management of MAS Financial amongst all the stakeholders on the Services Limited (MAS) believes in importance of environment conservation Environmentally Conscious approach for & protection. The company also all business & operational
Slide 37: Enhancing Social Impact (1/2)
Enhancing Social Impact (1/2) SHIKSHA PROTSAHAN “Caring for communities is a way ✓ Identified & supported various bright students from more of life” than 30 schools who wish to pursue higher studies ✓ Provided basic infrastructure facilities at many schools ❖ MAS Financial Services Ltd around Ahmeda
Slide 38: Enhancing Social Impact (2/2)
Enhancing Social Impact (2/2) Shiksha Protsahan Anganwadi MAS Financial Services Limited 37 Blood Donation Welfare of War Widows’
Slide 39: Strict Governance Compliance
Strict Governance Compliance 1 2 3 4 5 6 The management Strict compliance Rich experienced Regular Adequate Board approved of MAS with the Board of the monitoring & processes, policies on Financial regulations of Company continuous operational & IT Corporate Services Limited SEBI, RBI and comprising
Slide 40: Governance Framework
Governance Framework Board of Directors Advisory Committee (7 Directors including 5 Independent Directors) to the Board Committee Chaired by Other Committees Independent Directors MAS Financial Services Limited ֍ Audit Committee ֍ Finance Committee ֍ Risk Management Committee ֍ Credit Committee ֍ St
Slide 41: Understanding MAS
Understanding MAS
Slide 42: About MAS
About MAS VISION MISSION BELIEF To be one of the most efficient To constantly endeavor, to attain excellence and create “We have miles to go & Promises to keep……” distributors of financial services and a very wide Financial distribution network and to be “Together we can and we will” create value on
Slide 43: Visionary Leadership
Visionary Leadership Experienced Promoters Mr. Kamlesh Chimanlal Late Mr. Mukesh Gandhi, 57, is the Chimanlal Gandhi, a Co- One of the founder and former Founder, Chairman, and Managing Director of Director (Finance) at highest promoter MAS Financial Services MAS with over two Limited, brought over
Slide 44: Governance by an Independent Board; Guidance from Industry Leaders
Governance by an Independent Board; Guidance from Industry Leaders Corporate Advisory Committee Mr. Bala Bhaskaran Mr. Chetan Ramniklal Shah Mr. Umesh Rajanikant Shah Dr. Rajiv Kumar Mr. TT Srinivasaraghavan Independent Director Independent Director Independent Director Former Vice Chairman of Niti
Slide 45: Robust Risk Management
Robust Risk Management Portfolio & Asset Quality Policies Process • MAS has well diversified products • MAS has comprehensive policies • MAS endeavours to have processes to portfolio and wide geographical presence framework for all the critical functions follow the laid down core policies. (through
Slide 46: Robust Credit Assessment
Robust Credit Assessment MAS aims to give credit where it is due with the dictum of adherence and adaptability Comprehensive Credit Assessment Credit Assessment Process Overview by Product Business loans require A assessment of business viability, cash flow, and profitability Income Profile Salaried
Slide 47: Unique and Robust Distribution Network Through NBFC Partners
Unique and Robust Distribution Network Through NBFC Partners Aim & Our Understanding Impact Efficient last mile delivery of credit across Value chain approach has proven to be MAS NBFCs its product range namely MEL, SME, 2- the most potent one to solve informality • Widens its network while maintain
Slide 48: Sharpening the Learning Curve
Sharpening the Learning Curve Our proven track record of more than ₹22,000 cr cumulative disbursement through NBFC partners with total loss less than 0.50% over a decade across various tough periods assures our confidence on the distribution model. Our Learning Curve is Further Strengthened by Credi
Slide 49: Way Forward
Way Forward
Slide 50: Key Growth Strategies for Consistent Growth
Key Growth Strategies for Consistent Growth – Entering the next phase of growth after crossing an important milestone of ₹ 100 Bn in AUM Focus towards direct lending Growth Drivers Aim to grow AUM by Share of business from direct Housing, SME and Wheels 20% to 25% over the distribution will increase
Slide 51: Enablers for Consistent Growth
Enablers for Consistent Growth Successful Track Record Highly Capitalised Robust Liability Management • Successfully withstood multiple • Highly capitalised for future growth. • Cash & bank balances of ~ ₹8,423 Mn. as on headwinds over the years Sufficient capital to continue the growth 31st March 2
Slide 52: Shareholding Profile
Shareholding Profile
Slide 53: Marquee FIIs and DIIs Shareholders
Marquee FIIs and DIIs Shareholders Shareholding as on 31st March 2024 Marquee Investors (%) Others (Including AIFs, Fis, Banks & Individuals) Foreign Portfolio Investor 10.42% 1.79% Alternate Investment Funds 7.40% Domestic Institutions 6.66% MAS Financial Services Limited 73.73% Promoter and Promot
Slide 54: Events & Milestones
Events & Milestones
Slide 55: Major Events & Milestones
Major Events & Milestones Note: As per Calendar Year ✓ On incorporation, commenced retail finance operations with ✓ Bank loan rating was upgraded to ‘IND A’ with ‘Stable 1995 Two-wheeler and Micro-Enterprise loans 2016 1995 outlook ✓ Raised subordinate debentures of ₹ 400 Mn ✓ Motilal Oswal infused
Slide 56: Best Wishes
MAS Financial Services Limited Registered Office 6, Ground Floor, Narayan Chambers, Ashram Road, Ahmedabad-380009 www.mas.co.in Investor Contact Best Wishes Mr. Ankit Jain Chief Financial Officer 079-41106682 ankit_jain@mas.co.in Mr. Meet Chande Investor Relations Manager 079-41106551 meet_chande@ma
MAS Financial Services — Q4 FY24 Earnings Presentation on 6ix